If everybody is losing, who is gaining?

american economy in doldrums. sensex is down, every investor is loosing. question is; is there anyone who is gaining. is there a big manipulator? if somebody is loosing, there must be someone who is gaining

Traders, People who borrowed money they could not pay back, Democrats who benefited from the Mortgage Scam, Politicians who got the kickbacks, and ACORN.

the Warren Buffet's and the Donald Trumps of this world.

People who have no mortgage repayments with any banks, people who don't have bad debt, people who have recession-proof jobs and people who don't rely on credit cards to survive. I guess it's normal people who is gaining in life.

I chose to invest last week after watching from the sidelines, Freddie Mac go from 25 cents to $2.95 earlier last month. So after seeing that a $10,000 investment at those levels would have increased to over $100,000 in a week, I decided that I would not lose out on a big opportunity.

So... I started watching National City Bank (NCC) about 10 days ago. I watched it go from $4 to $2 back to $4 in a matter of minutes and it had very high volume (+200 million shares traded). That was on a Friday when this occurred. So last Monday when the bailout failed in the House I decided to put a buy order on NCC at $1.75, at the time NCC was around $2.75 and I thought it would never hit. I was watching in real time and it sank to $1.75, my order filled, then it kept sinking!!! It hit $1.25 and closed at $1.35 or so. So I invested $4,000 and it was worth $2,800 at the end of the day.

Then all last week it rose and rose and rose and rose. Rumor was the bailout bill would pass on Friday and the financials would skyrocket, and the dow would close +600 easy. Well, Thursday NCC was around $3.17 or so, I was up huge. Friday came and in the pre-market NCC was up to $4, I was up more than double my $4,000 investment. That morning it hit $4.19 and hovered around $3.95 all morning waiting on the outcome of the bailout vote.

To make a long story short, I didn't sell when my $4,000 investment was worth nearly $9,000!!! As you know, on Friday the dow was off nearly 200 points, and NCC closed at $3.50. On Monday it opened up around $2.80 and I got rid of everything. I made almost $2,000. So I was kinda happy but would have been much happier if I sold when I was up $5,000. When you factor in my losses on Apple (-$200) and today's losses (-$400), I am up around $1,400 total.

I pulled everything and I will wait on the sidelines until I see something worth buying again.

PS: I was thinking about buying Washington Mutual the day before it went bankrupt so I guess you could say I got very lucky!

PSS: There are 2 things that continue to drive me crazy. Number 1, why didn't I sell when I was up 5 grand? It is killing me. Number 2, if I would have bought closer to the bottom, say around $1.35 or so, then I would have tripled on Friday and would have surely sold everything and would have been up over $8,000 feeling like I was on top of the world.

Wow!!! highly interesting Question.
It goes like this,

Banks are losing bcoz their FUNDS are LOCKED IN MORTGAGES.
They are losing bcoz they are unable to sell the mortgaged properties, there are no buyers. Finally even some buyers agree to buy, they are asking for VERY LOW prices. Thats how banks are selling properties at LOSS, if at all they are able to sell (the CHEAP BUYERS ARE GAINING HERE)

Investors losing heavily in Stock Market, bcoz the SELLERS of shares are higher than the BUYERS of the SHARE.
It is not that there are no BUYERS, there are buyers but due to fall in Sensex, they buy at a VERY LOW price. ( Thus BUYERS OF SHARES are GAINERS here).

Wise investors will not sell at this time. They will hold on. Ofcourse u can go ahead and buy shares at economical rates. After a whole lot of excessive show down, some day the market has to recover, and then the uoward swings will revive.

Investors who have bought the shares at lower prices and sold it at higher prices are making gains. Some people may sell the shares at lesser prices but if they once again buy it at further lower prices then also they make gain. This game goes on until they come out completely and checkout the profit or loss.

ONLY AND ONE PERSON.......P.CHIDAMBARAM

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